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Although it’s only been around for less than two decades, the history of Bitcoin is rich and exciting, nonetheless.
While it holds a reputation as an emerging global commodity today, sharing the same breath as long-standing commodities like gold, that wasn’t always the case. Moreover, the thread that ties Bitcoin to its philosophical origins is worth understanding for anyone who holds or uses it.
That’s what we’ll cover today.
From the early thinkers who dreamed up a new form of money to Satoshi Nakamoto, Bitcoin’s anonymous founder, read on to learn all about the history of Bitcoin.
Let’s go way back to the late eighties and early nineties — the dawn of the public internet.
While excitement grew about the possibilities of this new technology, concerns arose about government and corporate surveillance in this new digital world.
Here is where we meet the cypherpunks. Who are they?
The cypherpunks were a loose collective of cryptographers, programmers, activists, and thinkers using the early internet to meet and share ideas. They took a proactive approach to protecting privacy and autonomy online.
Here are some of their main ideals:
These digital philosophers set the foundation for Bitcoin, as some of these ideas are at the core of what Bitcoin is and what it represents for die-hard holders. While we often see Bitcoin now as digital gold, it’s much more than that.
But we’re getting ahead of ourselves. We still need to explore the earlier forms of digital cash.
One of the cypherpunks' missions was to create a purely digital form of cash.
This was easier said than done. They had to overcome many obstacles. Even so, each new attempt paved the way for what we know today as Bitcoin:
The problem with most of these attempts is that they failed to overcome what’s called the “double-spending problem.” This problem is simple in theory: “How can you prevent someone from spending the same digital coin twice?” But in practical solutions, it was a hard problem to solve in a decentralized way without relying on a central, trusted authority.
Then, Bitcoin broke the code.
In late 2008, Satoshi Nakamoto published “Bitcoin: A Peer-to-Peer Electronic Cash System.”* (read the Bitcoin white paper on bitcoin.org)
This white paper outlined a novel way to create a workable system for digital cash. It solved the double-spending problem using a blockchain system and a Proof-of-Work mining system. With the blockchain, transactions are connected to each other and are on a public ledger.
This means not only can any person view it, but any attempts to change the ledger are obvious, making it virtually impossible to tamper with.
We take it for granted now, but at the time, this was nothing short of revolutionary.
But why was Bitcoin created? Well, it was the spiritual successor of those cypherpunk ideals. It was a censorship-resistant, peer-to-peer digital cash that put trust in the hands of users. Moreover, with a fixed supply of 21 million Bitcoin, it strongly resonated with those critical of inflationary forms of money (known as fiat money, which are used by central banks).
The first block ever created was inscribed with this message: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.”* (learn more on investopedia.com)
This is widely interpreted as a direct commentary on the failures of the traditional financial system during the 2008 Global Financial Crisis and a statement about Bitcoin’s purpose as an alternative.
Today, Bitcoin has a market capitalization of around $1.7T* (as of April 2025, data from coinmarketcap.com).
To put that in perspective, Bitcoin beats out companies like Meta, Tesla, Walmart, Visa, JPMorgan Chase, and many more* (as mentioned on companiesmarketcap.com) in market capitalization — and it's done it all in under 20 years.
But knowing about the history of Bitcoin helps us understand its mission, not just its price.
Bitcoin isn't supposed to be a purely speculative asset. Instead, it’s a replacement for the global financial system and a solution to our reliance on fiat money that can be printed and inflated at will.
There will only ever be 21 million Bitcoin. The supply is locked. That means, while fiat dollars devalue in price, Bitcoin, theoretically, will not. That’s why many view it as a hedge against inflation. Moreover, it’s decentralized, meaning no one person, government, or organization can control it.
The basic history of Bitcoin helps us better understand why this popular cryptocurrency is so important. Sure, it’s great to see the price go up and more and more people adopt Bitcoin into their lives. But now we know it’s much more than that.
It’s a true digital revolution.
What to join in? Bitcoin Depot is here to help. Our mission is simple: bring Bitcoin to the masses. Through our network of Bitcoin ATMs, we’re making that happen.
You can easily purchase Bitcoin with cash at one of our over 8,500 (as of April 2025) Bitcoin ATMs across the U.S., Canada, and Australia.
Find your nearest location today.
*The information provided above is for informational purposes only. The inclusion of any particular 3rd party site does not imply an endorsement, sponsorship, or partnership between Bitcoin Depot and the 3rd parties listed above. While Bitcoin Depot endeavors to ensure the accuracy and relevance of the information provided, we do not guarantee the reliability of any 3rd party’s information.